Is there an interrelationship between American market performance and market performance in other countries? Explain why this may or may not occur.

Is there an interrelationship between American market performance and market performance in other countries? Explain why this may or may not occur.

 

 

answer:

The interrelationship between one market with other market is always there directly or indirectly and market will operate accordingly.Suppose America is purchaseing machinery from china and due to poor economic in America , American company not able to purchase from China and due to this the demand of machinery in Chaina fails as a result the China not able to sell at the same what America is able to pay and sold to India at lower price by which the China market fails. So the market of America fails means market of chaina fails but India market will raise because purchased from China at lower price due to failure of America market. So one country’s market performance depends on the other country’s market performance . All are interrelated in the world may be in directly or indirectly. But one thing it is clear that if one country fail means other country will fail and subsequently some country will gain upto the point of equillibrium. One loose means other will gain it is definite upto certain level. If you look overely some one loose means other will may gain or loose. But does not mean that all will fail. It never when a developed country fail means the good for under developed country because the benefit will transfer to under developed country and purchaseing power of under developed country will increase.

So all are interrelated and if some will fail the other may fail or loose it depends.

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